Income Tax
Section 87A Rebate — Meaning
A rebate that reduces tax to nil for resident individuals with taxable income up to ₹12 lakh (new regime).
What is Section 87A Rebate?
Section 87A gives resident individuals a rebate of tax: up to ₹60,000 under the new regime for taxable income up to ₹12 lakh, with marginal relief just above, and up to ₹12,500 under the old regime for income up to ₹5 lakh. The rebate doesn't apply to tax on special-rate income such as short- and long-term capital gains on listed equity, so a taxpayer with salary below ₹12 lakh can still owe tax on such gains.
More Income Tax terms
ITR (Income Tax Return)
Annual declaration filed with India's Income Tax Department reporting income, deductions and tax paid.
AY (Assessment Year)
The year in which income earned in the previous financial year is assessed and taxed.
FY (Financial Year)
The 12-month period from April 1 to March 31 during which income is earned and recorded.
PAN (Permanent Account Number)
Unique 10-character alphanumeric identifier issued by the Income Tax Department to every taxpayer.
TAN (Tax Deduction Account Number)
10-character number required by entities that deduct or collect tax at source (TDS/TCS).
